Omnicom Group, Inc. (OMC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Omnicom Group, Inc. ?

High Management Efficiency with a high ROCE of 38.22%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 1.02 times

Poor long term growth as Net Sales has grown by an annual rate of 2.63% over the last 5 years

Flat results in Jun 25

ROCE(HY) Lowest at 33.96%
EPS(Q) Lowest at USD 1.31

With ROCE of 32.55%, it has a fair valuation with a 3.20 Enterprise value to Capital Employed

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.06%, its profits have fallen by -2.2%

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -13.06% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Omnicom Group, Inc. should be less than 10%
Overall Portfolio exposure to Media & Entertainment should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Omnicom Group, Inc. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Omnicom Group, Inc.

-7.13%

-0.36

30.86%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.57%

EBIT Growth (5y)

5.77%

EBIT to Interest (avg)

9.73

Debt to EBITDA (avg)

1.02

Net Debt to Equity (avg)

0.67

Sales to Capital Employed (avg)

1,728.55

Tax Ratio

27.70%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

38.22%

ROE (avg)

44.33%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

EV to EBIT

12.84

EV to EBITDA

11.53

EV to Capital Employed

EV to Sales

1.80

PEG Ratio

Dividend Yield

1.89%

ROCE (Latest)

ROE (Latest)

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,938.2 MM

INTEREST COVERAGE RATIO(Q)

Highest at 1,198.65

CASH AND EQV(HY)

Highest at USD 10,287.6 MM

DEBT-EQUITY RATIO (HY)

Lowest at 35.55 %

DIVIDEND PER SHARE(HY)

Highest at USD 1.2

NET SALES(Q)

Highest at USD 5,528.8 MM

OPERATING PROFIT(Q)

Highest at USD 974.5 MM

OPERATING PROFIT MARGIN(Q)

Highest at 17.63 %

-13What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

ROCE(HY)

Lowest at -0.67%

DEBTORS TURNOVER RATIO(HY)

Lowest at 1.2 times

INTEREST(Q)

Highest at USD 81.3 MM

PRE-TAX PROFIT(Q)

Lowest at USD 279.6 MM

EPS(Q)

Lowest at USD -4.02

Here's what is working for Omnicom Group, Inc.

Operating Cash Flow

Highest at USD 2,938.2 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Interest Coverage Ratio

Highest at 1,198.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 5,528.8 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Net Sales

At USD 5,528.8 MM has Grown at 27.92%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 974.5 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 17.63 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Cash and Eqv

Highest at USD 10,287.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 35.55 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 1.2

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Depreciation

Highest at USD 98.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 98.3 MM has Grown at 61.94%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Omnicom Group, Inc.

Pre-Tax Profit

At USD 279.6 MM has Fallen at -57.75%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Interest

At USD 81.3 MM has Grown at 34.6%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Dividend Payout Ratio

Lowest at 0% and Fallen

In each year in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)

Interest

Highest at USD 81.3 MM

in the last five periods and Increased by 34.6% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

Lowest at USD 279.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

EPS

Lowest at USD -4.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Debtors Turnover Ratio

Lowest at 1.2 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio